1. Field of the Invention
The present invention relates generally to the management of customer relationships. More specifically, the present invention relates to the definition, characterization and categorization of the current and anticipated future status of customers in terms of acquisition, retention and profitability thereof.
2. Description of the Related Art
For companies operating in today's dynamic and highly competitive markets, the development and maintenance of a comprehensive customer-oriented strategy is arguably the key to success. To maintain stability and growth of the business, companies must grow their customer base (customer acquisition), retain their existing customers (customer retention) and induce their existing customers to spend more (customer profitability). To retain and increase the profitability of customers, companies must ensure that its current customers remain loyal and satisfied with the products and services offered.
Before a customer becomes a customer, however, the new prospect most often begins the relationship with the company as a salesperson's lead. A lead may mature into an opportunity that, in time, may become a customer. Existing customers, if characterized at all, are conventionally characterized as having one of two statuses: active or cancelled/closed. Conventionally, therefore, customer relationships are characterized according to the following continuum: lead, opportunity, active customer and cancelled or closed customer.
It has become clear that this customer relationship continuum is inadequate in accurately characterizing the current status of customers and is wholly unhelpful in providing clues as to future customer behavior. An accurate characterization of the status of customers is believed to be essential, however, to allow companies to intelligently allocate their finite sales, marketing and service resources. Indeed, companies must focus their resources where they will be most effective. Without an accurate characterization of the current and anticipated future status of customer relationships, such an allocation of resources may not be carried out as effectively as it might otherwise be.
What are needed, therefore, are methods and systems for more accurately and flexibly defining the current and anticipated future status of the relationship of a company with its customers.